We provided financial modeling and analysis support for a large institutional client working through the mechanics of a very complex fund and corporate structure involving multiple layers of investors, each of which has specific contribution and distribution rules.
The basis for our work was the legal documents, which our team reviewed to identify the relevant sections that governed the transaction. Next, the team designed a large context diagram that showed the relationships among the various entities involved in the transactions, with ownership stakes and pertinent details noted on it and layers that could be turned on and off to show the entities involved at different periods.
We then built a financial model for prospective projects that included multiple layers of debt at each phase of the development process and different waterfall structures for the various investor groups involved. The model had several custom requirements contained in the design and build.
Finally, the team worked on a detailed accounting data assignment model that would take actual transactions and assign them to the correct projects by investors to track past events, with the projection model providing estimates for future transactions.